CITY OFFICE REIT INC (CIO) Stock Fundamental Analysis
NYSE:CIO - New York Stock Exchange, Inc. - US1785871013 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to CIO. CIO was compared to 129 industry peers in the Diversified REITs industry. The financial health of CIO is average, but there are quite some concerns on its profitability. CIO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
CIO had negative earnings in the past year.
CIO had a positive operating cash flow in the past year.
In multiple years CIO reported negative net income over the last 5 years.
CIO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -1.82%, CIO is not doing good in the industry: 72.09% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -3.61%, CIO is doing worse than 66.67% of the companies in the same industry.
With a Return On Invested Capital value of 1.48%, CIO is not doing good in the industry: 78.29% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for CIO is in line with the industry average of 3.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.82% | ||
| ROE | -3.61% | ||
| ROIC | 1.48% |
ROA(3y)-0.59%
ROA(5y)5.55%
ROE(3y)-1.18%
ROE(5y)10.12%
ROIC(3y)1.69%
ROIC(5y)1.79%
1.3 Margins
With a Operating Margin value of 15.58%, CIO is not doing good in the industry: 65.12% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of CIO has declined.
CIO has a Gross Margin of 59.74%. This is in the lower half of the industry: CIO underperforms 68.22% of its industry peers.
CIO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.58% | ||
| PM (TTM) | N/A | ||
| GM | 59.74% |
OM growth 3Y-7.81%
OM growth 5Y-2.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.77%
GM growth 5Y-1.27%
2. Health
2.1 Basic Checks
CIO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CIO has been increased compared to 1 year ago.
The number of shares outstanding for CIO has been reduced compared to 5 years ago.
Compared to 1 year ago, CIO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.57, we must say that CIO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.57, CIO perfoms like the industry average, outperforming 50.39% of the companies in the same industry.
CIO has a debt to FCF ratio of 32.33. This is a negative value and a sign of low solvency as CIO would need 32.33 years to pay back of all of its debts.
CIO's Debt to FCF ratio of 32.33 is fine compared to the rest of the industry. CIO outperforms 72.09% of its industry peers.
CIO has a Debt/Equity ratio of 0.89. This is a neutral value indicating CIO is somewhat dependend on debt financing.
CIO has a better Debt to Equity ratio (0.89) than 65.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 32.33 | ||
| Altman-Z | 0.57 |
ROIC/WACC0.23
WACC6.56%
2.3 Liquidity
CIO has a Current Ratio of 2.10. This indicates that CIO is financially healthy and has no problem in meeting its short term obligations.
CIO's Current ratio of 2.10 is amongst the best of the industry. CIO outperforms 80.62% of its industry peers.
CIO has a Quick Ratio of 2.10. This indicates that CIO is financially healthy and has no problem in meeting its short term obligations.
CIO's Quick ratio of 2.10 is amongst the best of the industry. CIO outperforms 80.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
CIO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -132.14%.
The Revenue has decreased by -4.92% in the past year.
CIO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.83% yearly.
EPS 1Y (TTM)-132.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
Revenue 1Y (TTM)-4.92%
Revenue growth 3Y1.43%
Revenue growth 5Y1.83%
Sales Q2Q%-5.02%
3.2 Future
CIO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.58% yearly.
Based on estimates for the next years, CIO will show a small growth in Revenue. The Revenue will grow by 2.23% on average per year.
EPS Next Y35.65%
EPS Next 2Y20.59%
EPS Next 3Y15.58%
EPS Next 5YN/A
Revenue Next Year-0.36%
Revenue Next 2Y1.66%
Revenue Next 3Y2.23%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for CIO. In the last year negative earnings were reported.
Also next year CIO is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIO indicates a rather cheap valuation: CIO is cheaper than 84.50% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CIO is valued cheaply inside the industry as 89.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.15 | ||
| EV/EBITDA | 9.89 |
4.3 Compensation for Growth
CIO's earnings are expected to grow with 15.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.59%
EPS Next 3Y15.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.17%, CIO is a good candidate for dividend investing.
CIO's Dividend Yield is a higher than the industry average which is at 6.66.
Compared to an average S&P500 Dividend Yield of 2.34, CIO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.17% |
5.2 History
The dividend of CIO decreases each year by -10.58%.
CIO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CIO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-89.69%
EPS Next 2Y20.59%
EPS Next 3Y15.58%
NYSE:CIO (7/23/2025, 11:34:50 AM)
5.53
+0.04 (+0.73%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners63.65%
Inst Owner Change0.77%
Ins Owners4.33%
Ins Owner Change7.53%
Market Cap223.19M
Analysts75.56
Price Target6.2 (12.12%)
Short Float %1.01%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.17% |
Yearly Dividend0.59
Dividend Growth(5Y)-10.58%
DP-89.69%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-103.31%
Min EPS beat(2)-217.5%
Max EPS beat(2)10.89%
EPS beat(4)2
Avg EPS beat(4)-65.11%
Min EPS beat(4)-217.5%
Max EPS beat(4)10.89%
EPS beat(8)5
Avg EPS beat(8)-34.24%
EPS beat(12)7
Avg EPS beat(12)-60.8%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)-1.28%
Revenue beat(4)0
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)-0.44%
Revenue beat(8)1
Avg Revenue beat(8)-1.12%
Revenue beat(12)4
Avg Revenue beat(12)-0.52%
Revenue beat(16)7
Avg Revenue beat(16)0.15%
PT rev (1m)0%
PT rev (3m)-1.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.32 | ||
| P/FCF | 11.15 | ||
| P/OCF | 4.09 | ||
| P/B | 0.31 | ||
| P/tB | 0.32 | ||
| EV/EBITDA | 9.89 |
EPS(TTM)-0.65
EYN/A
EPS(NY)-0.34
Fwd EYN/A
FCF(TTM)0.5
FCFY8.97%
OCF(TTM)1.35
OCFY24.44%
SpS4.18
BVpS17.98
TBVpS17.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.82% | ||
| ROE | -3.61% | ||
| ROCE | 1.88% | ||
| ROIC | 1.48% | ||
| ROICexc | 1.51% | ||
| ROICexgc | 1.55% | ||
| OM | 15.58% | ||
| PM (TTM) | N/A | ||
| GM | 59.74% | ||
| FCFM | 11.86% |
ROA(3y)-0.59%
ROA(5y)5.55%
ROE(3y)-1.18%
ROE(5y)10.12%
ROIC(3y)1.69%
ROIC(5y)1.79%
ROICexc(3y)1.72%
ROICexc(5y)1.83%
ROICexgc(3y)1.79%
ROICexgc(5y)1.9%
ROCE(3y)2.14%
ROCE(5y)2.27%
ROICexcg growth 3Y-4.09%
ROICexcg growth 5Y-6.09%
ROICexc growth 3Y-3.25%
ROICexc growth 5Y-5.38%
OM growth 3Y-7.81%
OM growth 5Y-2.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.77%
GM growth 5Y-1.27%
F-Score2
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 32.33 | ||
| Debt/EBITDA | 7.56 | ||
| Cap/Depr | 58.16% | ||
| Cap/Sales | 20.45% | ||
| Interest Coverage | 0.76 | ||
| Cash Conversion | 63.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 0.57 |
F-Score2
WACC6.56%
ROIC/WACC0.23
Cap/Depr(3y)52.99%
Cap/Depr(5y)267.48%
Cap/Sales(3y)18.45%
Cap/Sales(5y)93.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-132.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
EPS Next Y35.65%
EPS Next 2Y20.59%
EPS Next 3Y15.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.92%
Revenue growth 3Y1.43%
Revenue growth 5Y1.83%
Sales Q2Q%-5.02%
Revenue Next Year-0.36%
Revenue Next 2Y1.66%
Revenue Next 3Y2.23%
Revenue Next 5YN/A
EBIT growth 1Y-12.48%
EBIT growth 3Y-6.49%
EBIT growth 5Y-1.18%
EBIT Next Year237.57%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-68.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-48.48%
OCF growth 3Y-7.01%
OCF growth 5Y3.53%